Recovery Rebate Credit

[RayYanks]

If a couple claimed their 22 year old daughter as a dependent on their 2019 return but not on their 2020 return, is the daughter entitled to the $1,800 recovery rebate credit based on her 2020 return? The daughter's income is below the $75,000 threshold and her parents never received any stimulus payment for her.

[Brother Jack]

as long as the daughter does not qualify as a dependent of the parents then she should be eligible to receive the stimulus payment and recover/claim the payment on her 2020 return.

[Just-Lisa-Now-]

Dont worry about 2019.

Dont worry about what anyone else may or may not have received as an advance.

2020 is the eligible year.

If the daughter no longer qualifies as a dependent, she is entitled to the RRC.  If SHE got no advance during 2020, she gets the full amount on the tax return.

[qbteachmt]

Is this a Student?

Perhaps it would help to review what is really happening:

The funds were paid out as Advanced payment against a projection. The projection used 2018 or 2019 tax returns. But 2020 is the Actuals. You use the 2020 return to reconcile what a person is entitled to, against what they got.

If the person is not a dependent in 2020, then they would be entitled to the payment/credit as individual filers. That doesn't mean "not being claimed." It means "no longer qualifies as a dependent."

You might want to bookmark these links and read the IRS guidance.

Interactive wizards portal for determining dependency:

https://www.irs.gov/help/ita

And:

https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-a-eip-eligibility

https://www.irs.gov/coronavirus/second-eip-faqs#Eligibility

One for each EIP.

[RayYanks]

Thanks for your response. The daughter graduated in May of 2020, immediately got a job & earned $35,000